Somaxon sets IPO price talk at $13-$15 per share, number of shares at 5 million

By Ted A. Knutson

Washington, Nov. 30 - Somaxon Pharmaceuticals, Inc. set the initial price talk for its planned initial public offering at $13 to $15 per share for 5 million shares in an amendment to an S-1 registration with the Securities and Exchange Commission.

There is an over-allotment option for 750,000 shares.

Net IPO proceeds to the company are estimated at $63.2 million based on the mid-point of the offering price range and $73.0 million if the greenshoe is exercised in full.

The San Diego-based company is focused on developing psychiatry and neurology drugs. Its lead product candidate, Silenor (doxepin hydrochloride), is in phase 3 clinical trials for the treatment of insomnia. Somaxon's nalmefene hydrochloride is in a phase 2 and 3 clinical trials for the treatment of pathological gambling and a phase 2 clinical trial for smoking cessation. The company is also developing a new formulation of acamprosate calcium for the treatment of certain movement disorders.

Morgan Stanley is bookrunner and lead manager, and JP Morgan is joint lead manager. Co-managers are Piper Jaffray and Thomas Weisel Partners LLC.

Somaxon has applied to have its common stock listed on the Nasdaq National Market under the symbol "SOMX."

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